The Research On Legal Issue Of Real Estate Investment Trusts(reits) In China

Real Estate Investment Trusts (REITs) provide a realistic way for real estate investors (including small investors) to join in real estate investment and obtain benefits by collecting social capital and the investment and management of professionals. REITs also have important roles in expanding the financial channels of real estate, and spreading systemic risks. Legal factor is one of the important factors, which hinder the development of REITs in China.This article is divided into four parts. Part I: Overview of REITs. It includes the concept, and characteristics of trust, the relationship between trust and investment funds and the definition, characteristics, development overview and types of REITs. Part II: Extraterritorial legal systems of REITs. It introduces the legal systems which are decentralized legislation of REITs in United States,and the legal systems which are unified legislation of REITs in Asian countries and regions. It also compares and analyzes the characteristics of two legal systems. Part III: the significance of development of REITs and legal barriers in China. It introduces the positive significances of the development of REITs in China, and analyses legal barriers in China. Part IV: the legal strategy of REITs in China. It discusses the model of REITs in China, and proposed the legislative proposals about developing special law, linking with the relevant laws, and establishing legal system.This article compares with the development models and legal systems of extraterritorial REITs. It tries to find out the development model and the legal system of REITs, which consists with our national conditions and legal system. We should proceed in an orderly way, profit from the extraterritorial experience, and design REITs according to our national conditions. We must make unified legislation of REITs in China, link with the relevant laws, and establish legal system in order to develop the real REITs in China.